Michigan · Debt collection rights · Updated Oct 2026

Debt collectors in Michigan: your rights

What debt collectors can and can't do in Michigan, how long they have to sue, how much of your pay and bank account is protected, collector licensing, where to complain and what to do if you are sued, in plain English from official sources.

6 yearsto sue on a written contract
25% (federal limit)wage garnishment limit
Yescollector license required
Yesstate debt collection law
21 daysto answer a debt lawsuit

Your federal rights

These federal rules apply in Michigan and every other state. Michigan's own law, below, can add more.

  • Who the federal law covers. The Fair Debt Collection Practices Act (FDCPA) covers debt collectors who collect for someone else and companies that buy debts, not usually the original creditor collecting its own debt (15 U.S.C. 1692a(6)). Some state laws also cover original creditors.
  • A validation notice. A collector must give you a validation notice, in its first message or within 5 days after it, with the amount, the creditor and how to dispute (15 U.S.C. 1692g(a); 12 CFR 1006.34).
  • Your right to dispute. If you dispute the debt in writing within the validation period (30 days after you get the notice), the collector must stop collecting until it mails you verification (15 U.S.C. 1692g(b); 12 CFR 1006.38).
  • When collectors can contact you. No calls before 8 a.m. or after 9 p.m. your time, or at work if your employer doesn't allow it (15 U.S.C. 1692c(a)). More than 7 calls in 7 days about one debt is presumed to break the law (12 CFR 1006.14(b)(2)).
  • Telling a collector to stop. If you tell a collector in writing to stop contacting you, it must stop, except to tell you it is ending collection or will take a specific step such as a lawsuit (15 U.S.C. 1692c(c)).
  • What collectors can't do. No threats, obscene language, false statements (for example pretending to be a lawyer or the government, or threatening arrest) and no unfair practices such as collecting fees your contract doesn't allow (15 U.S.C. 1692d, 1692e, 1692f). A collector generally can't discuss your debt with your family, neighbors or employer (15 U.S.C. 1692c(b)).

Read how to dispute a debt or stop collector calls.

Michigan law and extra protections

State law
Michigan Occupational Code, Article 9 (collection agencies) and the Regulation of Collection Practices Act (creditors and others collecting their own debts)
Law
MCL 339.901 to 339.920; MCL 445.251 to 445.258
Covers original creditors
Yes
Extra protections
  • Businesses that collect their own debts (banks, credit unions, stores, employers collecting in their own name) are covered by the Regulation of Collection Practices Act. It bans deceptive and harassing collection methods (MCL 445.251(1), 445.252).
  • Collectors may not use harassing, oppressive or abusive methods, such as making your phone ring repeatedly or calling at unusual times or places they know are inconvenient for you. All contacts must be made between 8 a.m. and 9 p.m. unless you agree in writing to other times (MCL 445.252(n); MCL 339.915(n)).
  • Collectors may not contact you about a debt by postcard (MCL 445.252(r)).
  • Collectors may not make inaccurate, misleading or deceptive statements, or hide the purpose of a call or letter (MCL 445.252(e)).
Can you sue under it?
Yes. You can sue under either law. You get your actual damages or $50, whichever is more. If the violation was willful, the court may add a penalty of at least 3 times your actual damages or $150, whichever is more, and in that case must award attorney's fees and court costs (MCL 445.257; MCL 339.916).
Official text
Read the law

Old debts in Michigan

Written contracts
6 years
Open accounts and unwritten agreements
6 years
Does a payment restart the clock?
A time-barred contract debt is revived only by an acknowledgment or promise to pay that is in writing and signed by you. An acknowledgment or promise that isn't in writing doesn't count (MCL 600.5866).
Law
MCL 600.5807(9); MCL 600.5866
Official text
Read the law

The time limit is the statute of limitations. Once it runs out, the debt is “time-barred”: a collector must not sue or threaten to sue you, but the debt still exists. Read more about time-barred debt.

Is my debt too old? Check Michigan's time limit

Every state limits how long a creditor or collector has to sue you over a debt. This is the statute of limitations. Choose your state, the type of debt and the date of your last payment to see the limit and an estimated end date. Nothing you type here is sent anywhere.

Credit cards count as written contracts in some states and as open accounts in others. If you are not sure, try both.

Or the date you first missed a payment, if you never paid.

Michigan: 6 years for a written contractEnter the date of your last payment to see when the time limit ends.

An estimate from our state data, not legal advice. Your state's law and your account records decide the exact start date and the type of debt.

Wage garnishment and bank accounts in Michigan

Wage limit
Federal limit applies. The court's garnishee disclosure form uses the federal tests: the lesser of 25% of your disposable earnings, or the amount above 30 times the federal minimum wage per week (SCAO form MC 14, citing 15 U.S.C. §§ 1672-1673).
Law
15 U.S.C. § 1673; SCAO form MC 14 (Garnishee Disclosure, Periodic); MCL 600.4031

Federal benefits such as Social Security, SSI and VA benefits that were directly deposited are protected in your bank account up to two months' worth (31 CFR 212.6). A creditor usually needs a court judgment before it can garnish your wages or bank account.

Property you can keep in Michigan

Homestead: up to $3,500 in value for a home you own and live in (40 acres outside a town, or 1 lot in a town) (MCL 600.6023(1)(g)). Household goods, furniture and appliances: up to $1,000 (MCL 600.6023(1)(b)). Tools and vehicles needed for your job: up to $1,000 (MCL 600.6023(1)(e)). IRAs are generally exempt (MCL 600.6023(1)(j)).

Collector licensing in Michigan

License required
Yes
Who licenses
Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Professional Licensing, Board of Collection Agencies (MCL 339.904)
Check a license
Official license lookup

If you are sued in Michigan

Time to answer
21 days after you receive the summons and complaint, if served in person in Michigan. 28 days if you were served by mail or outside Michigan (MCR 2.108(A); summons form MC 01). This applies in district and circuit court.
If you don't answer
If you don't answer or take other action in time, the court may enter a judgment against you for what the plaintiff asked for (summons form MC 01).
Court self-help
Michigan court self-help (official)

Don't ignore court papers. Read what to do if a debt collector sues you.

Where to complain in Michigan

Free help in Michigan

Good to know in Michigan

  • Michigan has two collection laws. One covers licensed collection agencies (Occupational Code Article 9). The other covers creditors collecting their own debts (Regulation of Collection Practices Act). Both let you sue for at least $50 (MCL 339.916; MCL 445.257).
  • In Michigan, a payment does not by itself revive an old debt. Revival requires a written, signed acknowledgment or promise (MCL 600.5866).
  • Michigan medical-debt bills (SB 449-451 of 2025) passed the Senate on March 11, 2026; a House committee reported all three on June 17, 2026. As of October 24, 2026 they are on second reading in the House and are not law yet.

Changes in 2024–2026

Medical-debt bills SB 449, 450 and 451 (2025-2026 session) passed the Senate on March 11, 2026; the House Health Policy committee reported all three on June 17, 2026, and they are on second reading in the House. Not law as of October 24, 2026.

Free letters to send a collector

Dispute a debt and ask for proof (validation letter)

Within 30 days of the collector's validation notice.

Tell a collector to stop or limit contact

Stop all contact, writing only, or no calls at work.

Questions about debt collection in Michigan

What is the statute of limitations on debt in Michigan?

6 years for written contracts and 6 years for open accounts and unwritten agreements (MCL 600.5807(9); MCL 600.5866).

Does paying on an old debt restart the clock in Michigan?

A time-barred contract debt is revived only by an acknowledgment or promise to pay that is in writing and signed by you. An acknowledgment or promise that isn't in writing doesn't count (MCL 600.5866).

How much of my paycheck can be garnished in Michigan?

Federal limit applies. The court's garnishee disclosure form uses the federal tests: the lesser of 25% of your disposable earnings, or the amount above 30 times the federal minimum wage per week (SCAO form MC 14, citing 15 U.S.C. §§ 1672-1673).

Do debt collectors need a license in Michigan?

Yes. Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Professional Licensing, Board of Collection Agencies (MCL 339.904)

Does Michigan have its own debt collection law?

Yes: the Michigan Occupational Code, Article 9 (collection agencies) and the Regulation of Collection Practices Act (creditors and others collecting their own debts) (MCL 339.901 to 339.920; MCL 445.251 to 445.258). It also covers original creditors collecting their own debts.

How long do I have to answer a debt lawsuit in Michigan?

21 days after you receive the summons and complaint, if served in person in Michigan. 28 days if you were served by mail or outside Michigan (MCR 2.108(A); summons form MC 01). This applies in district and circuit court.

Where can I complain about a debt collector in Michigan?

Michigan Department of Attorney General, Consumer Protection Division (for licensed collection agencies, you can also complain to LARA): https://www.michigan.gov/ag/consumer-protection · 877-765-8388

Sources

Last checked: Oct 24, 2026.

Federal sources

Other states